TK development investment fund (investment fund growth), under the provisions of circular no. 200/2014/TT-BTC helps enterprises with funds dedicated to investing in the project development, production, business and which does not affect financial performance. In this article Accnet will share useful information about account development investment fund to help accountants/financial managers master the way accounting is most effective.
1. Development investment fund's account?
Development investment fund's accounts 414 - used to reflect the existing situation and the volatility of the investment fund growth in the business.
This fund is appropriated from profit after tax in order to serve the investment activity development, production, business, projects to expand the scale of production of the enterprise. Purpose of account:
- Account development investment fund recorded deductions from net profit after tax to create a fund's investment growth.
- Recorded the account used from this fund to invest in fixed assets, construction projects, basic, or financial investment.
- Manage/monitor the situation to use investment and development funds to ensure funds are used effectively, for the right purpose.
Content reflection of account 414:
| External Debt | Parties Have | Balance side Has |
| The account used for investment and development, production, business. The account, reduce the investment and development fund. | Deductions for investment funds growth from net profit after tax of the business | Number of investment funds growth's existing business |
2. How accounting account development investment fund circular 200
Below is the accounting details account development investment fund (TK 414) under circular no. 200/2014/TT-BTC:
2.1. Established development investment fund from profit after tax
After determining the profit after tax, periodic business conduct established the fund as a rule, in which there is growth investment fund.
- Debt TK 421 - profit after tax has not distributed
- Have TK 414 - development investment Fund
Business A decided extract 1 billion from profit after tax to fund growth investment.
- Debt TK 421 - profit after tax has not distributed: 1,000,000,000 vietnamese dong
- Have TK 414 - development investment Fund: 1,000,000,000 vietnamese dong
2.2. Use account funds development investment to procure fixed assets
When businesses use funds growth investment to procure fixed assets, the amount used from the fund will be recorded in fixed assets.
- Debt of TK related (211 - fixed Assets tangible 213 - fixed Assets intangible, 241 - construction in progress,...)
- Have TK 111, 112 -, Cash, bank deposits (if paid immediately)
- Have TK 331 - Must be paid by the seller (if buy-resistant)
- Have TK 414 - development investment Fund (reduction fund)
Business A use 500 million from growth investment fund for the purchase of machinery and equipment.
- Debt TK 211 - fixed Assets tangible: vnd 500,000,000
- Have TK 111, 112: vnd 500,000,000
- Have TK 414 - development investment Fund: vnd 500,000,000
2.3. Use the account development investment fund to invest in construction projects basic
Business investment in the project of construction of the amount used will be recorded in construction in progress.
- Debt TK 241 - construction in progress
- Have TK 111, 112 -, Cash, bank deposits (if paid immediately)
- Have TK 331 - Must be paid by the seller (if buy-resistant)
- Have TK 414 - development investment Fund (reduction fund)
Business A use 2 billion from qquỹ investment growth to invest in project construction.
- Debt TK 241 - construction in progress: 2.000.000.000 dong
- Have TK 111, 112: 2.000.000.000 dong
- Have TK 414 - development investment Fund: 2.000.000.000 dong
2.4. Use of funds to finance investment
Use account development investment fund to finance investment (buying stocks, bonds, capital contribution, joint venture...), the used amount will be credited to the account financial investment.
- Debt of TK related (121 - investment securities short-term, 128 - investment long term financial 221 - investment in subsidiaries, 222 - investments in associated companies, 228 - other investment)
- Have TK 111, 112 -, Cash, bank deposits (if paid immediately)
- Have TK 414 - development investment Fund (reduction fund)
Business A use 1 billion from growth investment fund to buy shares.
- Debt TK 121 - investment securities short-term: 1,000,000,000 vietnamese dong
- Have TK 111, 112: 1,000,000,000 vietnamese dong
- Have TK 414 - development investment Fund: 1,000,000,000 vietnamese dong
2.5. Use the account development investment fund to contribute capital to the venture, link
Business contribution of venture capital, the link will be credited to the investment account joint venture.
- Debt TK 221 - investment in subsidiaries
- Have TK 111, 112 -, Cash, bank deposits (if paid immediately)
- Have TK 414 - development investment Fund (reduction fund)
Business A use 3 billion from investment funds growth to contribute capital to the venture.
- Debt TK 221 - investment in subsidiaries: 3.000.000.000 đồng
- Have TK 111, 112: 3.000.000.000 đồng
- Have TK 414 - development investment Fund: 3.000.000.000 đồng
2.6. Reduce the investment and development fund of the adjustment
The item reduction account development investment fund due to internal adjustment, or the decision of the leader board.
- Debt of TK related (111, 112, 421, ...)
- Have TK 414 - development investment Fund
Business A tune up 200 million from investment funds growth according to the decision of the leader board.
- Debt TK 421 - profit after tax has not distributed: 200,000,000
- Have TK 414 - development investment Fund: 200,000,000
2.7. The other professional related to investment and development fund
Business case had the following costs is not reasonable, valid to adjust to reduced growth investment fund. The amounts recovered from tài account development investment fund used but not effective.
- Debt of TK related
- Have TK 414 - development investment Fund
Business A revocation 100 million from investment funds growth was used inefficiently.
- Debt TK 111, 112: 100,000,000
- Have TK 414 - development investment Fund: 100,000,000
3. Reference
Business can refer to the source below to get the look in-depth account development investment fund:
- Circular no. 200/2014/TT-BTC of the Ministry of Finance on 22 June 12, 2014 guide mode, business accounting
- Circular 45/2013/TT-BTC guidance on the management, use and depreciation of fixed assets.
- The law on Vietnamese accounting
- The material in-depth financial accounting, business accounting.
- The magazine specialized accounting/finance
- Courses/workshops on financial accounting
- The Website of the Ministry of Finance and the General department of Taxation
The accounting account development investment fund, often cause difficulties for many businesses, due to the requirement to follow closely the account established use of the fund. Errors in the detection process can lead to the shortage of transparency, which affects investment decisions, financial management, long-term.
Accnet Cloud HKD solution provider of process automation and accounting investment and development fund, which helps businesses easily track, record, allocate funds correctly. The system helps businesses optimize the use of funds, gain efficiency and financial. Experience it now Accnet Cloud HKD to optimize the accounting development investment fund effective!
ACCOUNTING SOLUTIONS SMART ACCNET CLOUD HKD
With technology cloud advanced AccNet Cloud HKD allows businesses to control, comprehensive financial anytime, anywhere. Integrated system management books, invoices, financial statements, asset management, fixed, collated automatically. All processes are streamlined, minimize errors and maximize work efficiency.
Benefits of using accounting software AccNet Cloud HKD:
- Automates the entire accounting process
- Save operating costs thanks to the elimination of hardware investment
- Access accounting data from anywhere through cloud platform
- Data is always stored immediately
- Security financial data, absolute safety
- Intuitive interface, user friendly
- Smooth connection to the ERP system
- Constant updates of the provisions current accounting
AccNet Cloud HKD the is a strategic partner in the journey that lead the business to success. Select Vietnam - Choose the superior option difference.
In general, accounts 414 - Reflects the number of growth investment fund existing and increases and decreases of the fund in the business. Hope detailed information from the article above will help you to better understand how accounting account development investment fund circular 200.
CONTACT INFORMATION:
- THE COMPANY SHARES INFORMATION, LAC VIET
- 🏢 Head office: 23 Nguyen Thi huynh, Ward 8, Phu Nhuan District, ho chi minh CITY.CITY
- ☎️ Hotline: 0901 555 063 | (+84.28) 3842 3333
- 📧 Email: info@lacviet.com.vn
- 🌐 Website: https://accnet.vn/
